List three reasons why secondary markets are important.

Q: Explain the law of one price in the perspective of the following: a) Purchasing power parity b)…

A: Law of One Price: It is stated in the law of one price that, in the absence of friction between…

Q: etween: i. A Primary Market and Secondar

A: Primary Market The process through which a market becomes a source of securities is referred to as a…

Q: Discuss the market efficiency and its three forms.

A: The efficient market hypothesis (EMH)- states that the markets are generally efficient as it…

Q: What are the three forms of market efficiency

A: It declares that money related markets are instructively effective, subsequently, an individual…

Q: What is market model?

A: A market model is a numerical portrayal of the exchanges among different members, financial powers,…

Q: Explain primary market

A: Primary market is the market under which the securities of the companies are created. In the primary…

Q: Define spot markets

A: A place where numerous sellers, as well as buyers, come together for exchanging services and…

Q: Define trade-off theory

A: Answer: The trade-off theory suggests a leveraged company’s valuation is equal to the value of an…

Q: Define secondary market

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: What is a primary market?

A: Financial Markets refer to the place where financial assets or securities are being created,…

Q: What is market multiple method?

A: The market multiple methods is a hypothesis of valuation, in view of the reason that comparative…

Q: ate two reasons why the strong form of market efficient is important

A: Efficient market hypothesis is very important concept in the stock market analysis and understanding…

Q: Describe Trade-Off theory.

A: Trade-Off theory suggests that there is an optimal capital structure that maximizes the value of the…

Q: What is the market model? How is it different from the SML forthe CAPM?

A: The market model is utilized to show how forces of supply and demand powers cooperate to decide…

Q: public vs. private markets

A: Public market means Public Companies And private Market means Private companies.   Difference…

Q: What is secondary markets?

A: A company issues securities to raise funds. The securities are first issued in the primary market…

Q: behavioral view” of market efficiency

A: The Efficient Market Hypothesis is usually predicated on the belief that traders and investors…

Q: Define alternative trading system (ATS)

A: An alternative trading system (ATS) is not an exchange-regulated, yet a position that suits its…

Q: What is meant by purchasing power parity?

A: Purchasing power parity It is a measuring of the prices in various other countries that utilizes the…

Q: Differentiate primary markets from secondary markets?

A: Financial Markets refers to the place where financial assets or securities  are being created ,…

Q: Explain purchasing power parity

A: The formula to compute purchasing power parity:

Q: Explain three levels of market efficiency.

A: The 3 levels of market efficiency have been explained in the next step.

Q: What is market efficiency? Differentiate between weak and semi strong form efficiency

A: Market efficiency is the ability of markets to process the information quickly and generate the…

Q: What is market approach measurement?

A: The market approach is just like comparing one set of assets with another both having the same…

Q: Describe the market multiple approach.

A: Answer: A multiple market analysis is a method of financial modelling which assigns a value to an…

Q: EXPLAIN ALL YOU KNOW ABOUT EMT (EFFICIENT MARKETS THEORY).

A: Efficient  market theory  also known as efficient market hypothesis  is a hypothesis that states…

Q: What is market multiple analysis?

A: Answer: Market multiple analysis: A multiple analysis of market is a form of financial modelling to…

Q: Define Public markets

A: A public market is the place where various types of small businesses are operated independently by…

Q: What is market efficiency?

A: Market Efficiency term is taken from a paper written by Eugena Fama in 18970. Fama acknowledges that…

Q: Primary markets vs secondary markets

A: Primary markets: It is the market where the securities are first issued by the company to…

Q: What is the Efficient Markets Hypothesis (EMH)?

A: Efficient market hypothesis (EMH): It is other ways known as efficient market theory, could be a…

Q: Briefly explain Purchasing Power Parity?

A: Purchasing Power Parity (PPP) is a theory of exchange rate determination. Purchasing power parity is…

Q: Why Are Secondary Markets Important?

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: the market value of A

A: In this case of borrowing we buy cap from market at swap rate, if market interest rate is increased…

Q: The secondary market is best defined as the market.

A: Capital markets is largely made up of primary market (for the initial or first time issue of…

Q: What is the difference between primary secondary markets?

A: In the given problem we  need to select the correct option of the three options given.

Q: Explain public markets

A: Public markets in finance are stock markets where one investor can purchase securities of publicly…

Q: Explain similarities and differences using THREE (3) comparative characteristics of money and…

A: The money market is a place where you may lend and borrow short-term money. It trades in money and…